Summer Internship Presentation on Export & Import Procedures and Documentations

UNDER TAKEN AT RUPY FASHIONS UNDER THE SUPERVISION OF MR. S. P. CHOPRA (M.D)

MADE BY: NIKITA SAGAR M I B 2 ND Y R JAMIA MILLIA ISLAMIA

Objectives of The Study

To Understand the working of various Departments

of Rupy Fashions contributing towards the processing of export orders. To understand the role of merchandiser. To study import procedure. To study export procedure and documentation.

Research Methodology
Primary Data Qualitative research done through in-depth interview. For interviews non-structured open ended questions were used.

Secondary data Both internal and external research was done. For internal research ready to use documents available with the organization were used. For external research internet website and published book were consulted.

Company Overview
Rupy Fashions is engaged in manufacturing and exports

of ready made garments and home furnishing items in international markets.

The entire Organization works on a single EPR system,

which unifies all the departments working.

The company has grown from leaps and bounds from a

simple fabrication to a present turn over of Rs 27 Crores, around 670 employees and spread over 2 locations.
It has manufacturing units in two different states of India

viz. Delhi, Uttar Pradesh.

Departments at Rupy fashions

Yarn Department Knitting Department Washing and Dyeing Department Cutting Department Stitching Department Finishing & Packaging Department

Role of Merchandiser
The merchandising department acts like liaison

between the buyer and manufacturing division. The company's marketing team endeavors to enhance its share of business with existing customers and expand the customer base. The company receives order from customer by:

Growth in business from existing customers new customers developed through cold calls, trade fair meetings. Walk in customers

To Understand the Import Procedure

INDENT (received from sourcing Dept.) Check whether INDENT is licensed or Duty Payable If License, One Copy sent for license processing Check Shipment Term Accordingly place Booking with FORWARDED for Import Shipment (Ex:- Air, Sea) Expected Time On Delivery & Expected Time of Arrival to Sourcing Dept. Booking Confirmed Documents CHA prior to arrival of vessel for custom clearance

Sourcing Dept. obtains raw material (fabric) from CHA

Sourcing Dept. Forwarded to merchant

To Understand the Export Procedure

Pre- Shipment Procedure - Requisition Form(Planning Form) -Purchase Order (Check Shipment Date) Garment Sample with wash care for drawback Invoice Generation on the basis of P.O. Garment sample with wash care Provisional Packing list (from Production Dept.) Booking Template Booking with forwarder with provisional Invoice Packaging list (PL) Booking Templates Not for Online Check Cutoff date (Inform Merchant) Receiving of final packing list form Packing Dept./ Production Dept. Cargo will be sent by Dispatch dept. to CHA Final Paper ( Invoice, Packing list, Booking Template(for CHA) with shipping letters of instruction (for Forwarder) Original consigner set to be Handover to CHA/Forwarder (AIR: Consigner set with shipment + Custom Document) SEA: Depends on Buyer either Sent Directly or Handover forwarder Get Debt Note + Draft Follow up of original document form CHA/FORWARDER Check LEO (Let Export Order) One Set of Consignee + Original Docs received from forwarder set to A/C

EXPORT DOCUMENTS
INVOICE It is prepared by an exporter and sent to the importer for necessary acceptance. When the buyer is ready to purchase the goods, he will request for an invoice. It is of 3 types:

Commercial Invoice Consular invoice Custom Invoice

Packing List It shows the details of goods contain in each parcel or shipment. It indicates the type of package, such as box, crate, drum or cartons. Both commercial stationers and freight forwarders carry packing list forms. Certificate of Inspection It is the type of document describing the condition of goods and confirming that they have been inspected. It is required by some purchasers and countries in order to attest to the specifications. Certificate of Origin Importers in several countries require a certificate of origin without which clearance to import is refused. The certificate of origin states that the goods exported are originally manufactured in the country whose name is mentioned in the certificate

 GSP
It is generalized system of preference. It certifies that the goods being exported have originated or been manufactured in particular country. It is mainly useful for taking advantage of preferential duty concession, If available. It is applicable in countries forming European Union.

IEC Certificate
It is an import-export code certificate issued by DGFT, Ministry of Commerce and Govt. of India. It is 10 digit code number. No exports or imports will be affected without IEC code. It is mandatory for every exporter.

Wearing Apparel Sheet

It is like a checklist which gives the detail regarding the contents and design of the garment packed. And it is prepared in packing or production dept.. It is also contains to that information which is mentioned in the purchase order.

Bill of Lading
A bill of lading is document issued by a carrier which details a shipment of merchandize and gives title of that shipment to specified party. Bills of lading are one of three important documents used in international trade to guarantee that exporters receives payment and importers receive payment.

AIRWAY Bill It is also known as air consignment note. It is receipt issued by an airline for the carriage of goods. As each shipping company has its own bill of lading, so each airline has its own airway bill. Airway bill is not treated as a document of title is not issued in negotiable form. MATEs Receipts Its is receipt issued by the commanding officer of the ship when the cargo is loaded on a ship. It is the evidence that goods are loaded in a vessel. It is first handed over to the port trust authorities. After making payment of all port dues, the exporter or his agent collects the MATEs Receipt from the port trust authorities. It is freely transferable and it must be handed over to the shipping. Shipping Bill It is the main custom document, required by the custom authorities for granting permission for the shipment of goods. The cargo is moved inside the dock area only after the shipping bill is duly stamped, i.e, Certified by the customs. Shipping bill is normally prepared in 5 copies. A Letter of Credit It is a promise to pay. Bank issues letter of credit as way to ensure sellers that they will get paid as long as they do what they have agreed to.

LIMITATIONS OF EXPORT DOCUMENTATION

Although export documentation is an inevitable part of execution of

export order, there are some limitations associated with documentation aspect. Export documentation is a very tedious and cumbersome and complex procedure as no. of documents required to be prepared at various stages of export is very large, thereby making the task of exporter very difficult. Any small discrepancy in any one of the documents may result in the cancellation of the export order or non-payment of export money. Apart from the no. of documents being large, are more difficulty is that the no. of authorities to which these documents are required to be submitted is also large, thereby compounding the problem of exporter.

FINDINGS
Organizations depts. are not working productively

because the workload of one department is burdened only on a single employee. The Merchandising Department acts like liaison between the Buyer and Manufacturing division Organization is not very much cleared about import procedure, This is the reason they are not indulge in imports. Export procedure and export documentation is an inevitable part of execution of export orders.

CONCLSION & SUGGESTIONS

A common complaint made by the bankers is that the documents

submitted by exporters are often either incomplete or incorrect. This leads to delay or even refusal of payments. To avoid these delays, it is necessary to be very careful about documents, particularly in a case of letter of credit. It is necessary to check that letter of credit:

Is of the type agreed ex: Irrevocable and confirmed or just irrevocable Has an expiry i.e sufficiently far ahead for the goods to be shipped and required documents obtained and presented in time.

A central coordinating authority is to be set-up to look into

operational aspects and liaison among various departments. Use of the latest communication tools should be encouraged for speedy access to relevant information and instant approval.

Continued
A database of all the relevant procedural

requirements and other technicalities of documentation should be maintained for quick reference as and when required. Liasioning authorities must be established to carry the firm's voice to the Government in the face of changed policies.